January Capital, a Singapore-based asset management firm, has secured over $85m in initial investor commitments for a growth credit fund that will focus on the technology sector, according to a report by BNN Bloomberg.
The report cites a company statement as highlighting that the fund aims to provide loans to private equity-backed technology companies in the Asia Pacific region, addressing a growing funding gap for these businesses that are often too large for lenders who cater to unprofitable tech firms, but too small for those offering loans of $50m or more.
The January Capital Growth Credit Fund will reportedly provide loans ranging from $5m to $20m to technology companies seeking capital to expand into new markets, develop new product lines, or pursue acquisitions.
The fund will charge interest rates between 12% and 16%, plus upfront fees. Additionally, the loans will include warrants that allow January Capital to exercise them at a later date when the company owners exit the business.
The fund has already secured $20m from the US International Development Finance Corporation and a similar amount from an unnamed European development finance institution.
Other investors include wealth managers, family offices, and endowments. January Capital plans to raise up to $150m, with a final close expected in 2025.
